What is happening in the cryptocurrency markets? Analysis of the day
The cryptocurrency market has dropped dramatically today. BTC dropped to $ 47500, ETH to $ 2100, BNB to $ 450, they started to recover after the decline and showed a bullish trend. Along with BTC, many cryptocurrencies have also experienced the same declines. So what was the reason for this? Let's analyze what is happening in the cryptocurrency markets.
Cryptocurrency markets have fallen significantly after the US President Joe Biden's proposed tax hike on capital gains of those who earn more than $ 1 million, with overall impact on the cryptocurrency markets. This tax increase proposal shocked all markets. The stock markets have been heavily affected, but in the cryptocurrency markets, this effect seems to be over. The proposed bid is an increase of up to 39.6% instead of the current 23.8%.
Following the tax increase proposal, some investors chose to sell their cryptocurrency assets. After these sales, BTC fell almost 15% to $ 47,500, and many cryptocurrencies were also affected. The cryptocurrency market, which rose above $ 2 trillion last week, fell to $ 1.8 trillion. After the sudden decline, many cryptocurrencies recovered and entered an upward trend again.
I would also like to point out that another effect of the fall is due to a correction movement caused by excessively leveraged long positions.
Overall, when I analyzed the day, there was and is still a general decline in all stock markets. But I don't think the cryptocurrency market will be affected by the tax hike in the long run. For now, there has been a sudden reaction and a decline, but the cryptocurrency markets will recover in a short time. In fact, I can say that cryptocurrencies will move up again in the coming days. Currently, the cryptocurrency markets have started to recover again, At the time of writing, BTC is trading at over $ 50,000, ETH at over $ 2300, BNB at over $ 500.
Looking at the current prices, I think it's a great opportunity to hold your assets and invest in the cryptocurrencies you trust at the lowest prices.
Today's summary: "HODL" and "dip buying day". Also, looking at the prices today, I think it is a great opportunity to invest in LEO and HIVE at the lowest prices.
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